Rebar offers have declined in major Indian markets by INR 400-1,200/MT W-O-W owing to consistent weak buying. However, offers in south remained unchanged.
Rebar manufacturers have reduced offers by INR 400-1,200/MT W-o-W across Indian market except for south, which remained steady. Offers in East and North India rebar market have corrected sharply by INR 1,000-1,200/MT. Central and West India market corrected moderately by INR 400-900/MT.
Reason behind bearish rebar prices came out to be the seasonal effect as monsoon resisted sales of finished steel thereby keeping the demand low. In addition, the fall in billet prices by INR 200-900/MT W-o-W has also played a role in the declining of rebar prices. It’s interesting to note that steeper fall in the prices of rebar compared to billet is a clear indicative of high rebar inventory. This fact was further confirmed while talking to the market participants.
As per the sources, many rebar manufacturers in central and east India are holding high inventory levels owing to which, some have reduced production and others opted for temporary maintenance shutdown.
South is only market which remained steady from the last week. A rebar trader in Bangalore said, “Prices are likely to be under pressure in the upcoming days owing to low off take. Currently, rebar mills based in Bangalore offers are at INR 35,600/MT for 10,12,16 mm, however the same material from Hyderabad to Bangalore is offered at around INR 34,700/MT FOR.”
Indian Billet and Rebar Prices
|
Region |
City | Billet | W-o-W | Rebar# |
W-o-W |
| Central | Raipur | 23,300 | – 400 | 26,600 | – 700 |
| East | Durgapur | 23,000 | – 900 | 25,900 | – 1,200 |
| West | Ahmedabad | 24,300 | – 100 | 27,500 | – 900 |
| Mumbai | 24,300 | – 200 | 27,500 | – 400 | |
| Jalna | 23,800 | – 750 | 27,500 | – 900 | |
| North | Gobindgarh(MGG) | 26,200 | – 800 | 31,300 | – 1,000 |
| South | Hyderabad | 25,300 | + 100 | 27,700 | 0 |
| Chennai | 25,800 | 0 | 29,800 | – 100 | |
| Bangalore* | 25,400 | 0 | 30,100 | – 200 |
Basic Prices as on 22 July’15, #=12 mm, *Ingot price
Excise duty, CST/VAT extra
Source: SteelMint Research
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